Steve Bigalow Slides 2

Candlestick Patterns
Advanced Candlestick Patterns

Fry Pan Bottom
Cradle Pattern
Jay-Hook
Scoop Pattern
Belt Hold
Breakout Patterns
Introduction to Advanced
Fry Pan Bottom
Fry Pan Bottom
The downtrend starts

waning with the
appearance of small
trading bodies
As the trend starts slowly
curling up, a gap up in
price indicates that strong
buying sentiment has
now returned
Fry Pan Bottom minutes, days, months
Long Rounded Curved bottom
Fry Pan Bottom - Past Analysis
Big Percent move at top has a different

meaning when a pattern can be identified
The indecisive rounding bottom is the predominant factor
Fry Pan Bottom measuring point
Fry Pan Bottom - A Break Out or Failure?
A dimple usually marks

the Halfway point
Easy identification of a failure, which

makes for easy stop loss procedures
Fry Pan Bottom can become a Cup and Handle

CUP
Fry Pan Bottom Exuberant buying
Handle
Want to see break out buying
Or a J-hook pattern
Fry Pan Bottom What is expected?
CLWR Classic FP results
MICC excellent option trades
VCI Expected results
55% Gain
SQNM Breaking into new highs
INCY What is the entry strategies?
MEOH Option Strategies
SPWRA What does a gap up tell us?
BAS What do you do with this chart?
MD What pattern?
MGM Next target? Then what?
What do we want to see at the end of a FPB?
What Are we looking for now?
FPB/J-hook classic
Fry Pan Bottom
J-hook
Cradle Pattern
Cradle pattern
The Cradle Pattern is a symmetric

bottom pattern that is easy to
identify.
A downtrend becomes obvious
with a large black candle at the
bottom.
A series of small or indecisive
trading days trade in a flat area.
A bullish candle, more powerful
with a Bullish Engulfing signal, is
formed of approximately the same
magnitude as a Bearish candle at
the end of the downtrend.
This signifies that the Bulls have

come out of the indecisive trading
area with decisive force.
Cradle Pattern
Cradle Pattern what is the predominant indicators?
Cradle pattern
Cradle Pattern at the MAs
Cradle pattern
Jay Hook Pattern

The first move of the
uptrend is very strong.
A candlestick sell signal
indicates a pullback about
to occur.
After a few days, small
indecisive candles start to
appear
Doji, small Hammers,
Bullish Engulfing signals
Jay Hook Pattern

The first test becomes the
recent high
Indecision as found in
candlestick sell signals at
the recent high becomes
a quick indicator to get
out of the position
A Bullish candle
breaching the recent high
illustrates that investor
sentiment is taking prices
up
J-hook
Jay Hook Pattern

How to differentiate between profit taking
and a full-scale reversal.
Jay Hook
J-Hook How to Identify
The pull back is stopped when

Candlestick buy signals appear
J-hook - what is first criteria?
A strong price trend
Stochastics do not get to the

Oversold area
J-Hook with added confirmation
J-Hook Easy Expectations
Indecisive trading at a major moving average

Adds more evidence of a J-hook pattern potential
Scoop Pattern
An extended flat
trading area
Followed by a pullback
Buy signals bring

price back up to flat
trading range
Once price breaks
above flat range, look
for strong uptrend
Scoop Pattern formation
Scoop Pattern- Completed
Scoop pattern
Scoop pattern off the MAs
Scoop pattern - Do not scan for a Scoop
Scoop pattern Use it to analyze
Scoop Pattern - What should happen upon confirming?
Scoop Pattern - A strong trend to potential targets
DHI 50 MA resistance?
WY
Mini Scoops
LVS
PCX
MEE What is the buy criteria?
WYNN
Belthold
Belt Hold Pattern

Strong prevailing trend
The candlestick body
should be the opposite
color of the prevailing
trend
Gap on the open,
continuing the trend
The open is the high or
low of that trend
The length of the body
should be a long body.
Belthold - Adds strength to existing trends
Belthold shows the sellers are flushed out
Belthold gets rid of the last of the sellers
Belthold
Belthold
Belthold Bearish
Breakouts
Breakout Patterns
Knowing
when to get on
board and when to take
profits.
Breakouts
Moving
Averages
Support
Breakout where to buy?
DOW
Analyzing The
Market
MAs support and targets
MAs act as magnets
MAs and patterns
MAs once breached , will come back and test
MAs Targets
MAs first attempts usually fail
Wave 1-2-3
The T-line
Trend channels
Trading Gaps
Gaps represent enthusiasm to get into a position
to the point that investors will pay prices away
from any of the previous day's trading range.
Great for identifying panic selling at the bottom
and exuberant buying at the top.
HAR Stop Loss

High Powered Scanning Techniques with Candlesticks
Market trend
Strongest sectors
Strongest signals in those sectors
Additional indicators confirming
Best Target potentials
Easy stop loss points
Analyze best potentials
The Signal
The pattern
Where is it moving from? Mas, trendlines?
Where is the next resistance area?
What is the sector doing?
Money
Management
Eliminate
Emotions
The Point of investing is to have

the probabilities in your favor!
Candlestick signals provide the
positive probabilities
Candlesticks are merely the

graphic depiction of what
investor sentiment is doing
2008 Downtrend Easy analysis
Trend Analysis
Made easy with
Candlesticks
MAs support to resistance
Sell signals at declining MAs

Double Top at 200 MA
Dumpling Top
Cradle BUY
Double Top at 200 MA
J-hook
Dumpling Top has expectations
The Bottom Morning Star/Cradle Pattern
J-hook ends with Cradle pattern
What is the market doing Now?
Recent Rec - XTEX
CSIQ
MIPS buying the BO
CCME buying the J-hook
SOHU buy on BO
Buy when the patterns say to buy - BAS
F signals and MAs
Cradle Pattern indicates very strong uptrend

What was the market doing?
DOW trend
Signals at the MAs make HP trades
CORN
XIDE buy on BO confirmation
www.candlestickforum.com
WFR signals need confirmation

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Candlestick Patterns

Advanced Candlestick Patterns

Fry Pan Bottom

Fry Pan Bottom

The downtrend starts

Fry Pan Bottom minutes, days, months

Long Rounded Curved bottom

Fry Pan Bottom - Past Analysis

Big Percent move at top has a different

The indecisive rounding bottom is the predominant factor

Fry Pan Bottom measuring point

Fry Pan Bottom - A Break Out or Failure?

A dimple usually marks

Easy identification of a failure, which

Fry Pan Bottom can become a Cup and Handle

Fry Pan Bottom Exuberant buying

Fry Pan Bottom What is expected?

CLWR Classic FP results

MICC excellent option trades

VCI Expected results

SQNM Breaking into new highs

INCY What is the entry strategies?

MEOH Option Strategies

SPWRA What does a gap up tell us?

BAS What do you do with this chart?

MGM Next target? Then what?

What do we want to see at the end of a FPB?

What Are we looking for now?

Fry Pan Bottom

The Cradle Pattern is a symmetric

This signifies that the Bulls have

Cradle Pattern what is the predominant indicators?

Cradle Pattern at the MAs

Jay Hook Pattern

Jay Hook Pattern

Jay Hook Pattern

J-Hook How to Identify

The pull back is stopped when

J-hook - what is first criteria?

A strong price trend

Stochastics do not get to the

J-Hook with added confirmation

J-Hook Easy Expectations

Indecisive trading at a major moving average

Buy signals bring

Scoop Pattern formation

Scoop Pattern- Completed

Scoop pattern off the MAs

Scoop pattern - Do not scan for a Scoop

Scoop pattern Use it to analyze

Scoop Pattern - What should happen upon confirming?

Scoop Pattern - A strong trend to potential targets

MEE What is the buy criteria?

Belt Hold Pattern

Belthold - Adds strength to existing trends

Belthold shows the sellers are flushed out

Belthold gets rid of the last of the sellers

Breakout where to buy?

MAs support and targets